UNORGANISED RETAIL MARKET IN INDIA By: Team

7

RETAIL

According to Kotler: “Retailing includes all the

activities involved in selling goods or services to the

final consumers for personal, non business use”.

The Indian retail is dotted by traditionally market

place called bazaars or haats comprises of

numerous small and large shops, selling different or

similar merchandise .

ORGANISED AND UNORGANISED

Organised retailing refers to trading activities undertaken by

licensed retailers, that is, those who are registered for sales tax,

income tax, etc. These include the corporate-backed

hypermarkets and retail chains, and also the privately owned

large retail businesses.

Unorganised retailing, on the other hand, refers to the traditional

formats of low-cost retailing, for example, the local kirana shops,

owner manned general stores, paan/beedi shops, convenience

stores, hand cart, etc

ORGANISED v/s UNORGANISED

INDIAN RETAIL SCENARIO AT A GLANCE

The contribution of retail industry to India’s GDP is

more than 13%.

Indian retail industry (organized as well as

unorganized) spreads over more than 6 million outlets

(2.4 million urban and 3.6 million in rural).

As much as 96 per cent of the 6 million-plus outlets

are smaller than 500 square feet in area.

Just over 8 per cent of India’s population is engaged in

retail (compared to 20 per cent in the United States).

The BMI India Retail Report for 2010 says that the

total retail sector is approximately US$ 353 billion.

India's retail sector is estimated to touch US$ 833

billion by 2013 and US$ 1.3 trillion by 2018.

The organized Indian retail market is slated to grow

at a CAGR of 40%, touching US$ 107 billion by

2013.

COMPONENTS OF RETAIL SECTOR

TOP 10 RETAILERS WORLD WIDE

RETAIL IN INDIA, US & CHINA

FEW JV IN RETAIL MARKET

SOME OF THE KEY PLAYERS IN ORGANIZED RETAIL

BANGALORE RETAIL

Bangalore is witnessing an all time

high demand in commercial and retail

real estate.

Momentum 2009 continues in 2010

with high streets leading the way for

retailers.

Retail Sector spreading to other

localities.

Government initiatives are further to

this growth in Bangalore. Private

builders and corporate bodies are

being promoted and encouraged by

the government.

Food and beverages sector

Hyper markets- Mac Donald's,

tgif, Costa coffee, brand calculus

etc.

Local and regional dining chains.

Other formats

TREND OF RETAIL

2010 Stable market

New brands and more expansion

BANGALORE – RETAIL SECTOR

BANGALORE – RETAIL SECTOR

CONCLUSION

REAIL BOOM IN EVERY NOOK AND CORNER

Fastest growing market in India

JOB & CAREER OPPURTUNITIES

As the sector is booming a career in retail sector promises good wages and growth

potential for the ambitious youngsters. There is a big demand for the retail management

professionals to process all merchandise shipments, to achieve store sales and profitability,

administration of stores as well as communication with the clients to satisfy them.

With rapidly expanding departmental stores and huge shopping malls, plenty of job

opportunities are opening all over India. An estimated growth rate in retail sector in India

has been about 30-40% with establishment of more than 200 shopping malls. It is estimated

that the retail sector will create over 13 million jobs throughout the country by 2012. More

than 60% of these jobs will be available in the rural areas

BANGALORE – RETAIL SECTOR

PUNE RETAIL

PUNE RETAIL SECTOR

From initial half of 2010, Retail sentiments

contributed largely by stable economic

scenarios.

Rental space accounts nearly 5million Sq.ft.

Population of Pune is approximately 3.5

million, which contributes maximum to the

unorganised retail sector.

The Organized retail market poised t grow at a faster rate

due to-

1. Economic slowdown in 2008 which curbed retail spending

2. Currently Pune is witnessing over supply of organised

retail supply which is higher htan the anticipated demand.

3. Rentals may see some corrections due excessive supply &

Demand mismatch, resulting in all major developers

postponing their retail developments.

RENTAL TRENDS

KOLKOTA RETAIL

“KOLKATA” UNORGANIZED RETAIL MARKET

Refers to the traditional formats of low-cost retailing,

for example, hand cart and pavement vendors, &

mobile vendors,  the local kirana shops, owner manned

general stores, paan/beedi  shops, convenience stores,

hardware shop at the corner of your street selling

everything from bathroom fittings to paints and small

construction tools; or the slightly more organized

medical store and a host of other small retail

businesses in apparel, electronics, food etc.

CHARACTERISTICS (UNORGANIZED RETAIL MARKET)

The traditional formats of low-cost retailing

Small-store (kirana) the easiest ways to generate

self-employment

Generally family run business

Purchase from kirana store in credit

The convenience store for the customer

FACTS ABOUT KOLKATA RETAIL MARKET(UNORGANIZED)

Huge size of market

Expanding and modernizing rapidly in line

with India’s economic growth

Having n number of options to cut their

costs like labor cost, operational cost etc…

Major contributor of Kolkata retail industry

RESENT TRENDS (UNORGANIZED RETAIL MARKET)

Unorganized to organized

Amplifying cost(rent, labor, operational)

Deployment of advance

technologies(computer, CC TV camera,

software)

Healthy competition

Change in consumer preference

CHENNAI RETAIL

CHENNAI RETAIL

Chennai is a growing retail market with malls

coming up in next few yrs.

The high occupancy rates in the mall was

because of limited supply of organized retail in

the city.

Lack of quality supply continues to challenge

the growth of these high streets.

Market stabilizing.

Rental Trends. Outlook

HYDERABAD RETAIL

HYDERABAD RETAIL

In India, every year the Retail Industry generates

12,000 crores in terms of retail sales

The retailing industry in Hyderabad is come into big

Shopping Malls, and huge departmental stores and

retail chains like Big Bazaar, Shopper Stop, and

Metro.

In the next two years thousands of jobs will be

generated in this Hyderabad Retail sector.

RETAIL SECTOR

Overall, the Hyderabad Retail Business Sector has large opportunities for

prospective business persons. With in the Hyderabad retail sector generating

fair profits, it would be beneficial for investors to tap it exactly in the manner

in which they want.

List of retail sectors in Hyderbad...:

Anand Shopping Centre

Anil Shopping Centre

Banjara Super Market

Big Bazaar-5

City Centre

CMC Secundrabad

Desires Shopping Arcade

Ellite Pearas Shopper

HYDERABAD RETAIL SECTOR

HYDERABAD CENTRAL MALL

HYDERABAD GM MALL

IMAGE BUSINESS CENTRE

IMAGE FUN TIMES LIFE STYLE LIFES TYLE INTERANTIONAL PVT. LTD.

M P M MALLS MARKS N SPENCERS MEENA BAZAR

PANTALOON SHOPPERS STOP SHREE MAHAVEER BAZAR

SWADESHI SHOPPING CENTRE

TEXO EXCLUSIVE VISHAL MEGA MART

VISHAL MEGA MART VISHAL SHOPPING CENTRE

WESTSIDE

Sectors with High Growth Potential: Certain segments that promise a high growth are

o Food and Grocery (91 per cent)o Clothing (55 per cent)o Furniture and Fixtures (27 per cent)o Pharmacy (27 per cent)o Durables, Footwear & Leather, Watch & Jewellery (18 per cent).

* Fastest Growing Formats: Some of the formats that offer good growth potential are:

o Specialty and Super Market (45 per cent)o Hyper Market (36 per cent)o Discount stores (27 per cent)o Department Stores (18 per cent)o Convenience Stores and E-Retailing (9 per cent)

More than 15 new Malls coming up in FY2008

and FY2009.

• Supply of Constructed Retail space will be a

key for retail development, which is in shortage

in all the major locations inside and around the

city.

• Areas like Madhapur, Kukatpally, Dilsukhnagar,

Uppal, banjara hills etc. still present huge

opportunity for Shopping innovations.

ARGUMENT FOR FDI

Tripathi, director of silk hut has said “foreign

companies is crucial for survival of domestic retail

companies

Tripathi feels that it is essential that FDI be allowed

at 100% equity,as it encourage domestic investment

He felt that it would be good to boost the economy

by facilitating higher FDI

inflows.

MUMBAI RETAIL

MUMBAI

Mumbai, The Financial Capital of India

The Mumbai retail market has seen a slow

recovery after the slowdown of 2009 as the latter

half of the year saw two prominent projects being

launched; Palladium at High Street Phoenix and R

City Centre (Phase 1), though these projects

reached 80% occupancy levels only in Q1 2010

BIG BRANDS ENTERING MUMBAI

The brands like Zara, The Comedy Store, Bo

Concept, Burberry, Hugo Boss, Canali, Diesel,

Sunglass Hut, DKNY, CK and Manchester United

Café & Bar among others.

The traditional high street destination Mumbai-

Linking Road witnessed the opening of a number of

new stores such as CK, FCUK, Adidas Essentials,

Guru, Maple Technologies etc.

RENTAL TRENDS

Due to a slump in market condition developers had

delayed delivery of projects as rentals also dipped.

With the recovery in the market, which led the

scarcity of limited supply of number of space of

new developments resulting in slight rise in

rentals.

The market sentiments improved with the

improvement in consumer spending.

HIGH STREET RENTAL

ORGANIZED RENTALS

THANK YOU